Yaya Toure scored one and made one as Manchester City took full advantage of Liverpool's slip-up against Chelsea and closed the gap on the Reds to three points.
City were visibly buoyed by Chelsea's 2-0 win at Anfield, which blew this absorbing Premier League title race wide open again - and it didn't take City long to make it an even better day for them.
Toure, brilliant for the 65 minutes that he was on the field, crafted the fourth minute opener with a clipped cross for Eden Dzeko, whose powerful header hushed a boisterous Selhurst Park.
With half time approaching, Toure doubled City's advantage with a fine solo effort. The imposing Ivorian's powerful run and quick change of direction allowed him to arrow a delightful left-footed shot into the top corner.
Palace lacked the tempo and intensity that had seen them beat Everton and Chelsea in recent weeks, and City held firm on a day that could be a pivotal one in the title race.
4' - GOAL! Crystal Palace 0-1 Manchester City - Dream start for City as Toure's delicate cross is powered home by Dzeko's thumping header.
43' - GOAL! Crystal Palace 0-2 Manchester City - Toure scores a fine goal, powering forward from midfield, shifting the ball onto his left foot and arrowing a superb left-footed shot into the top corner.
44' - PALACE CHANCE! Jerome almost pulls one back straight away, but he cannot quite make contact as the cross is fizzed in from the right.
47' - GOOD SAVE! Hart reacts well as Puncheon's low effort deflects towards the bottom corner.
The Eagles have not kept a clean sheet in any of their last 11 league meetings with Manchester City.
Six of Man City’s last seven Premier League goals have come before half-time.
Man City’s last seven Premier League games in London have produced 27 goals.
Is today the day the title swung into City's hands? Yes. Liverpool's defeat by Chelsea was the start of a very good day for Manuel Pellegrini's side, who know that victories over Everton, Aston Villa and West Ham will make it hard for anyone to stop them. Liverpool need a favour from Everton, but will they provide it?
Yaya Toure (Manchester City): Scored one and made one on his return from injury. Has now scored 19 goals from midfield for City; a fantastic return for a fantastic player.
Crystal Palace: Speroni 7, Mariappa 7, Dann 7, Delaney 6, Ward 6, Jedinak 6, Ledley 6, Bolasie 6, Puncheon 6, Chamakh 7, Jerome 7. Subs: Ince 6, Gayle 6, Murray 6.
Manchester City: Hart 7, Zabaleta 7, Kompany 7, Demichelis 8, Kolarov 7, Milner 7, Garcia 8, Toure 9, Nasri 7, Dzeko 8, Aguero 7. Subs: Fernandinho 7, Negredo N/A.